From EssentiallySports · Prit Chauhan · · 1m 10s
Magic Johnson Watches Kareem Lose Fortune
Magic Johnson saw Kareem Abdul-Jabbar lose nearly all his money after a business manager mishandled his finances.
In brief
Magic Johnson saw Kareem Abdul-Jabbar lose nearly all his money after a business manager mishandled his finances. Kareem Abdul-Jabbar lost nearly his entire fortune due to his business manager's mismanagement, while Magic Johnson built his wealth through mentorship. Originally reported by EssentiallySports.
Kareem's Financial Crisis
By 1986, Kareem Abdul-Jabbar was so overextended he borrowed money from his business manager to cover living expenses.
Magic Johnson's Account
Magic Johnson wrote about Kareem losing his fortune after a business manager mishandled his finances.
Business Manager's Control
Abdul-Jabbar gave Thomas Collins broad control to sign checks and take loans in his name for six years.
Financial Losses
Collins lost nearly $300,000 on a cattle-feed venture and caused $9 million in debt by 1986.
Fire Damage
A 1983 fire destroyed 90% of Kareem's Bel Air home, including trophies and uninsured rugs.
Collins' Reputation
Collins was denied certification as a player agent in 1990 after mismanaging Kareem's finances.
Magic's Approach
Magic Johnson built his fortune by learning from successful executives and checking every deal himself.
The key point
Kareem Abdul-Jabbar lost nearly his entire fortune due to his business manager's mismanagement, while Magic Johnson built his wealth through mentorship.
